The Mahindra Group, one of India’s biggest conglomerates has bought a minority stake in the London-based The East India Company for an undisclosed amount, both companies said today in a statement.
The East India Company (TEIC), the rights of which are in the hands of 48-year-old diamond dealer Sanjiv Mehta, operates through a luxury store in Mayfair, London’s upmarket fashion destination opened early last year.
The store deals in selling fine food including tea, coffee, biscuits, jams marmalades, chocolates, oils, sweets, champagne, among several other things. Both entities have refrained from giving out details of the deal including stake size.
In a joint statement they said, “Both companies will commence a long-standing relationship with significant investment to perpetuate the growth of the world’s oldest international brand.”
Anand Mahindra, Vice Chairman and Managing Director, Mahindra Group, said, “The East India Company was the world’s first truly global brand spanning continents and centuries, and had a profound impact on the development of international trade. This immense vision and scope finds a parallel with Mahindra’s own global aspirations to think beyond its size. We look forward to further enhancing its equity across the world”.
The East India Company Group stated that it wishes to build the brand on a global scale with further portfolio launches with an investment of $100 million planned over the next five years.
Mehta acquired controlling interest in TEIC in 2005 and has spent over $15 million as investments in restoration of the brand and other expenses. Mehta wishes to extend the brand to other areas such as homeware, drinks, furniture, publishing, hospitality and hotels.
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The fine foods business will now expand to Asia, the Middle East and the US via retail, e-commerce and selected wholesale operations. Alongside this, the Group will see further portfolio launches designed to build on the authenticity and heritage of the brand including furniture and home decoration, publishing, jewellery and real estate.
Originally established in 1600, The East India Company is one of the most recognised brands in the world. As per records, it once employed a third of the British workforce and was responsible for 50 percent of global trade.
The company’s Indian headquarters were in Calcutta (now Kolkata) with the UK one in Leadenhall Street in London. It was dissolved in 1874 after the Government of India Act transferred its powers to the Crown.